As the world grapples with news of the recent bankruptcy of Silicon Valley Bank (SVB) and Signature Bank, the cryptocurrency market has experienced a sudden bull run. Despite the collapse of the three major banks, U.S. President Joe Biden emphasized in a recent speech that the U.S. banking system remains safe and sound.
At the time of writing, Bitcoin is up 18% above $24,000 to $24,097. Ethereum also rose 12.7 percent to $1,665, while BNB gained 10 percent to $309. Many other major cryptocurrencies are also up more than 10%.
The total market capitalization of the entire crypto market has surpassed $1.13 trillion amid surging cryptocurrency prices, with Bitcoin’s market share growing to 43.4%.
Over a 24-hour period, Bitcoin futures open interest increased by 11%, mainly from exchanges Binance and CME. Additionally, GBTC is up 3% today, 20% in the past month, and 54% since the beginning of the year.
Biden ensures deposits at SVB and Signature Bank are safe
President Biden reassured the public and markets in his speech on the morning of March 13. “If people need it, their savings are still there,” he insisted.
Deposits at SVB and Signature Bank remain safe and customers can withdraw their deposits starting March 13, Biden announced. He also added that taxpayers would bear no burden should the bank fail.
It follows the collapse of two major U.S. banks, SVB and Signature Bank, sparking fears of a potential widespread financial crisis. It was the second and third largest bank failure in U.S. history.
Anyone who has deposited money in these banks “can rest assured that they are protected and have access to their money starting today,” the US president said.
He also plans to press the U.S. Congress to strengthen banking regulation and hold accountable those involved in banking woes.
“Investors who pour money into these banks will not be protected. They know they have to take the risk. When the risk comes, they will lose money,” he said.
#bitcoin Soars above $23,000 as President Biden reassures U.S. banking system @azcoinnews https://t.co/gXaYl6hbFx
— Kyptos (@azcoinnews) March 13, 2023
In response to bank failures, US officials announced a series of measures to restore confidence in the banking system. Under these measures, all deposits at SVB and Signature Bank will be protected, including uninsured deposits (deposits over $250,000) regulated by the Federal Deposit Insurance Corporation (FDIC).
The Fed also announced a lending program to ensure banks have enough cash to meet the needs of savers and borrowers.
The sudden spike in cryptocurrency prices can be attributed to investors’ lack of confidence in the traditional banking system and their search for alternative investment options. Cryptocurrencies offer a decentralized and secure alternative to the traditional banking system, which may explain their growing popularity among investors.
However, it is worth noting that investing in cryptocurrencies carries significant risks due to their volatility and speculative nature. Investors should exercise caution and conduct due diligence before investing in any cryptocurrency.
- U.S. Senator Urges Banks Should Not Punish Entire Crypto Industry for ‘Some Worms’
- US President Proposes Changes to Crypto Tax Rules
according to Kyptos